How to Buy a Crypto Index

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Rather than pick individual stocks, many stock market investors prefer to invest in funds based on broad-based indexes or market sectors. Over the past five to ten years, the number of cryptocurrencies available to investors have grown. New sectors like DeFi (Decentralized Finance) have emerged as well. What options are available to investors who would rather buy a crypto index as an easy way to acquire and manage a portfolio of coins? This article will explain how to buy a crypto index.

Why Buy a Crypto Index?
  • Accurately track the broader crypto market
  • Reduce volatility and risk
  • Lower effort

Crypto Index Asset Selection
  • Characteristics
  • Market cap, impact of BTC
  • Large cap vs. sectors

Crypto Index Allocation
  • Market cap weighted
  • Equal weighted
  • Square root weighted
  • Minimum weight

Crypto Index Maintenance
  • Additions and deletions
  • Rebalancing
  • Buffer zone
  • Frequency

What Crypto Indexes Are Available?
  • Bitwise 10 (BITW)
  • Bloomberg Galaxy Crypto Index (BGCI)
  • Nasdaq Crypto Index (NCI)
  • S&P Crypto Megacap (SPCMC)
  • CMC
  • Cboe and CoinRoutes

Trading a Crypto Index
  • Exchange listings
  •  Investment products vs. baskets
    • Fair value
    • Fees
  • Dollar cost averaging

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  • Access more coins

  • Invest in a portfolio of coins - coming soon!

  • Trade smarter

  • Save money

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